Warren Buffett's Berkshire Hathaway Inc has agreed to join hands with Jorge Paulo Lemann's 3G Capital for a deal aimed at buying HJ Heinz Co. for about USD 23 billion.
The two buyers are going to pay USD 72.50 a share in Heinz as against yesterday's closing price of USD 60.48.
Buffet told a leading news channel that Berkshire will spend about USD 12 billion to USD 13 billion on the deal for the maker of condiments and Ore-Ida potato snacks.
He said that the deal would be financed with cash from 3G affiliates, plus the rollover of existing debt, and is valued at about USD 28 billion including debt.
"Heinz has strong, sustainable growth potential based on high quality standards, continuous innovation, excellent management and great tasting products," said iconic investor Buffett who has been looking for such deals as his company's cash pile climbed to USD 45 billion.
